Public sector banks start sending their employees back to West Asia

Had temporarily recalled officials handling treasury, wholesale, and corporate banking as war escalated

Large public sector banks, which had temporarily recalled employees from West Asia under their business continuity plans (BCPs), have started sending them back to their overseas branches with tensions in the region having relatively eased, according to sources aware of the development.

 

Officials from at least three large state-owned banks returned to their Dubai offices last week after operating from India for a brief period following the outbreak of the West Asia conflict, sources said.

 

Banks had shifted some officials handling treasury, wholesale banking, and corporate banking operations to India as a precautionary measure in April as the United States and Israel started firing missiles at Iran. In retaliation, Iran expanded its attacks across the Gulf region, targeting Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the United Arab Emirates.

 

“Employees who were brought back as part of contingency measures have now returned to their respective branches as the situation has improved,” said a source at a large public sector bank.

 

Another official from a large state-run lender said treasury operations were handled from the Mumbai office during the period, and there was no disruption to business operations.

 

State-owned lenders with branches in the Gulf region, particularly at the Dubai International Financial Centre, had activated BCP measures while continuing operations remotely from India.

 

During its post-earnings call earlier this month, Canara Bank said it had temporarily moved some officers from its Dubai branch to India as a precautionary step and was continuously reviewing the situation in consultation with a committee monitored by the Indian Banks’ Association (IBA).

 

“Only one of our branches was affected,” MD and CEO Hardeep Singh Ahluwalia said at the call, adding that the bank had to move its officers from the Gulf back to India for a brief period. “Initially, we had planned [the move] for 10 days, but we will again review the situation. The committee, monitored by the IBA, is continuously meeting with other banks as well with suggestions on how to cope [with the situation],” he added.

 

Another banker at a large state-owned bank said the impact on operations remained limited since branches in the region largely cater to wholesale and corporate banking clients.